BAA plans £800m property fund to pay for expansion (UK)

Airports operator BAA PLC is in talks with Scottish Widows, about setting up an 800 mln stg fund to hold part of its huge property portfolio, The Sunday Telegraph reported without citing sources.

Under the deal, known as Project Devon, BAA and Widows would inject substantial borrowings into the joint venture, allowing the airport operator to release hundreds of millions of pounds which could be used to fund extensive expansion programmes.

Much of BAAÂ´s property is in or around the major London airports and tends to attract a premium value; the company owns Heathrow, Gatwick and Stansted airports amongst others.